Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

	Division
	Osaka		Yokohama
Sales	$	9,800,000	$	28,000,000
Net operating income	$	588,000	$	2,240,000
Average operating assets	$	2,450,000	$	14,000,000

Required:
1.	For each division, compute the return on investment (ROI) in terms of margin and turnover.

	Osaka		Yokohama
ROI		%		%

2.	Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division.

	Osaka	Yokohama
Average operating assets
Net operating income
Minimum required return on average assets
Residual income	$0	$0